Cutting corners, 3 main types:
- Revenue funded – often the most beneficial to the founders. Founders keep the full control of the company and have all options available further down the line, drawback is you have to make ends meet with less money available.
- Externally funded - typically by FFF, angels or industry specific investors. Founders are still in drivers seat, but get additional financial resources. This type of money does not seek for the most aggressive multiplier with a double or nothing strategy but is more about making carefully vetted bets.
- Venture funded – the high stakes game. This is the most aggressive money which is seeking for very fast growth with a very high mortality rate.
What should be noted is that all 3 strategies do allow every company to realise their full potential, there are many successful companies (even unicorn level) who have never taken VC money. The amount of money raised correlates poorly with the eventual success.